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    CONSTRUCTION SPECIFICATION FOR PIPELINE

    RIGHT-OF-WAY

    URUGUAY TO BRAZIL PIPELINE

    PREPARED FOR

    BRITISH GAS / PAN-AMERICAN ENERGYGASODUCTO CRUZ DEL SUR

    INTEC PROJECT H-1096.02

    FEBRUARY 1999

    0 FEB-01-99 ISSUED FOR INVITATION TOTENDER

    B DEC-10-98 ISSUED FOR CLIENT APPROVAL /REVIEW CLR RJP GG II

    A1 NOV-24-98 ISSUED FOR IN-HOUSE REVIEW CLR RJP GG

    REV. DATE DESCRIPTION BY CHKD APPD CLIENT

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    Specification No. H-1096.XXRev. X/Page 2

    Date

    SPECIFICATION NO.: H-1096.02-CS-001

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    TABLE OF CONTENTS

    1 SCOPE 1

    2 CODES AND STANDARDS...............................................1

    3 CONSENTS, PERMITS, LICENCES AND AUTHORISATIONS. 1

    4 MINIMIZE DAMAGES AND INCONVENIENCES...................1

    5 COMPANY PROVIDED RIGHT-OF-WAY.............................1

    5.1 WIDTH OF RIGHT-OF-WAY................................................2

    5.2 CLEARING RIGHT-OF-WAY.................................................2

    5.3 GRADING THE RIGHT-OF-WAY...........................................4

    5.4 FENCES, TELEPHONE AND UTILITY SERVICES (ABOVE ANDUNDERGROUND)............................................................5

    5.5 CROSSING OF RICE FIELDS...............................................6

    5.6 GENERAL.........................................................................7

    6 ACCESS AND TRAFFIC PLANNING...................................8

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    1 SCOPE

    The WORK required under this specification includes the furnishing of all

    supervision, labor, mobilization of materials and equipment, and services

    necessary for and reasonably incidental to the clearing, grading and

    preparation of the WORKING WIDTH in a manner satisfactory to the

    COMPANY.

    2 CODES AND STANDARDS

    The CONTRACTOR has the responsibility of compliance with all the

    applicable regulations, codes, standards and specifications. In the event

    of any apparent conflict between this specification and any such applicable

    regulation, code or standard, or in the event of disagreement concerningthe requirements of any such applicable code, regulation or standard, or in

    the event of a disagreement concerning the requirements of any such

    applicable code, regulation or standard, the COMPANY shall have the

    right, but not the obligation, of interpreting the regulations, codes,

    standards, and specifications and their application to the WORK. The

    COMPANYs decision on any disputed interpretation shall be the final

    resolution of the dispute.

    3 CONSENTS, PERMITS, LICENCES ANDAUTHORISATIONS

    The CONTRACTOR is required to obtain and/or procure all consents,

    permits, licenses, authorizations and all such approvals required during

    the design, engineering, construction, pressure testing and pre-

    commissioning stages of the WORK other then those that are specifically

    indicated as being obtained by the COMPANY.

    4 MINIMIZE DAMAGES AND INCONVENIENCESIn addition to complying with the specifications and special provisions of

    the CONTRACT documents, the CONTRACTOR shall, to the greatest

    degree possible, perform the WORK at all locations so as to minimize

    damage to the rights-of-way, and to minimize inconveniences to the

    interests of the land owners and tenants.

    5 COMPANY PROVIDED RIGHT-OF-WAY

    The COMPANY shall provide right-of-way within which the PIPELINE shallbe constructed and the right of ingress and egress to and from the

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    WORKING WIDTH. Such right-of-way, wherever feasible, shall be the

    width as stated in the special provisions of the CONTRACT documents.

    Where it is not feasible for the COMPANY to secure the width indicated in

    the special provisions of the CONTRACT documents, the CONTRACTOR

    shall comply with the terms of the right-of-way easement and all

    environmental permit conditions.

    5.1 WIDTH OF RIGHT-OF-WAY

    5.1.1 The width of the right-of-way across streets, highways, railroads, and other

    public right-of-ways shall comply with such specifications required by the

    authorities having jurisdiction over such thoroughfares. It is the

    responsibility of the CONTRACTOR to become familiar with, and comply

    with these local specifications.

    5.1.2 WORKING WIDTH and WORKING AREA secured by the COMPANY will

    be as illustrated on alignment sheets. The CONTRACTOR may request

    the COMPANY to provide additional WORKING AREA or additional

    accesses to the WORKING WIDTH. Refer to Scope of Work (SECTION 3

    of CONTRACT). The COMPANY may attempt, but is not obligated, to

    obtain these additional WORKING AREA or additional accesses.

    5.2 CLEARING RIGHT-OF-WAY

    5.2.1 CONTRACTOR, before starting any clearing operations, shall comply with

    all special provisions included in the CONTRACT documents, right-of-way

    easements and environmental permits secured by the COMPANY. The

    WORKING WIDTH shall be cleared over its entire width, unless restricted

    by the terrain or other features shown on the 1:10,000 Drawings in

    SECTION 9 (Contract Information).

    5.2.2 Subject to the special provisions of the right-of-way easements, the

    CONTRACTOR shall confine all WORK to the width of the right-of-way.

    Such right-of-way shall be indicated in either the special provisions of the

    CONTRACT documents for the job under which the WORK is being

    performed, or in the right-of-way easement documents.

    5.2.3 The CONTRACTOR shall protect all shrines, monuments, and sites of

    interest. If it is necessary to remove a number of these items for

    safekeeping, the CONTRACTOR shall contact the responsible authorities

    or persons concerned in advance and shall fully conform to their

    requirements. The COMPANY shall also be advised in advance of any

    actions to be taken by the CONTRACTOR.

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    5.2.4 Where blasting is considered necessary, CONTRACTOR is to comply with

    the Blasting specification H-1096.02-CS-005

    5.2.5 Where timber is encountered it shall be subject to all special provisions of

    the right-of-way easement and the special provisions of the CONTRACT.

    The right-of-way shall be cleared to the minimum stated therein by the

    removal of all trees, brush, stumps and other encumbrances level with the

    surface of the ground. The CONTRACTOR shall also remove stumps in

    the way of the trench and dispose of all stumps and debris during the

    clearing operation. Holes remaining after stumps have been cleared, shall

    be filled with suitable material and compacted. CONTRACTOR shall clean

    the right-of-way a sufficient distance from the trench line so that the spoil

    bank from the trenching operations shall not fall on any foreign materialthat might become mixed with the excavated soil. Clearing operations

    done with bulldozers shall be confined to the right-of-way and shall comply

    with all environmental permit conditions related to the crossings. Trees,

    stumps and brush, shall not be pushed off the right-of-way.

    5.2.6 All timber, and all tree tops, brush and stumps shall be hauled away and

    disposed of outside right-of-way limits during the clearing operation by

    CONTRACTOR at a place and in a manner satisfactory to the COMPANY.

    In no case shall the CONTRACTOR allow hauling and disposal of debristo remain for the clean-up operation. The CONTRACTOR shall offer

    timber removed from the land during right-of-way clearing free of charge to

    the landowner. It shall be the responsibility of the CONTRACTOR to

    secure all necessary permits for disposal of debris.

    5.2.7 The CONTRACTOR shall provide and maintain suitable temporary walks,

    passageways, fences, or other structures so as not to obstruct or interfere

    with traffic in public streets, highways, or private rights-of-way, to the

    satisfaction of the COMPANY. The CONTRACTOR shall maintain fromthe beginning of twilight through the whole of each night, on or near the

    construction SITE, sufficient and proper light, to protect from injury all

    persons, horse drawn or automotive vehicles, or livestock. At all times

    CONTRACTOR shall have sufficient acceptable equipment/material in

    place to prevent any animate or inanimate object from entering the right-

    of-way/open pipe ditch. Whenever WORK is suspended, the

    CONTRACTOR shall keep all roadways and walks in proper condition,

    and put and leave in the same proper condition at the termination of the

    WORK.

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    5.2.8 The CONTRACTOR shall provide and maintain suitable temporary

    passageway in brooks, streams or rivers, so as not to interfere with travel

    on or through, or irrigation from these waterways.

    5.2.9 The CONTRACTOR shall carefully comply with all special provisions of

    the right-of-way easements and environmental permits, including, for

    example, the preservation of all trees, shrubs, hedges, lawns and the

    preservation of fish and game, pollution control or other ecological

    considerations specified in such agreement as not to be disturbed, and

    pay for all damage resulting from failure to afford such protection.

    5.2.10 The CONTRACTOR shall provide and maintain erosion and sedimentation

    control structures as required by applicable regulations and/or the Erosion

    and Sedimentation Control Plan. This may include, but not necessarily be

    limited to, the installation of temporary bridges for stream crossings,

    erection of silt containment structures, and construction of water diversions

    to minimize the impact of earth moving activities.

    5.3 GRADING THE RIGHT-OF-WAY

    5.3.1 Irregularities in the topography along the right-of-way shall be graded

    preceding the trenching operation. Right-of-way grading and other

    operations shall be performed in a manner that will preserve topsoilthrough all cultivated or improved fields and pastures for replacement in its

    original position. Top soil shall at all times be segregated and stored

    separately from other material.

    5.3.2 The grading operation includes proper grading of the terrain so as to allow

    safe passage of loaded trucks and equipment without undue wear and tear

    thereon, as well as to permit the trench to be graded properly for the

    placement of field made pipe bends. Grading shall be performed in a

    manner acceptable to the COMPANY. Blasting shall be as specified inparagraph 5.2.4 herein. Pipe shall not be laid in fill areas created as a

    result of right-of-way grading.

    5.3.3 Grading shall be performed in compliance with all applicable

    environmental permits. In general, grading shall be minimized in

    environmentally sensitive areas such as along stream banks adjacent to

    the right-of-way in order to preserve protective vegetation such as grass

    and shrubs that reduce the potential for erosion in these areas. The

    CONTRACTOR shall be responsible for constructing diversion levees to

    control surface runoff.

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    5.4 FENCES, TELEPHONE AND UTILITY SERVICES (ABOVE ANDUNDERGROUND)

    5.4.1 Wherever it is necessary to cut fences for access to the right-of-way, the

    CONTRACTOR shall furnish the necessary materials and labor for theconstruction of suitable temporary gates and fencing. These temporary

    fences are to be securely braced adjacent to the proposed cut before the

    cut is made so that no additional sagging will occur in existing fences. The

    temporary fences will be constructed so that livestock shall be prevented

    from entering or leaving the property and shall comply with any specific

    requirements in the right-of-way easement.

    5.4.2 When necessary, or required by the COMPANY, CONTRACTOR shall

    furnish watchmen to maintain these gates or gaps.

    5.4.3 Gaps in hedges shall be permanently closed with a suitable fence to the

    satisfaction of the COMPANY, at no cost to the COMPANY for labor or

    materials.

    5.4.4 When telephone or utility lines interfere with the safe ingress

    and egress of CONTRACTORs tools and equipment in the

    construction of the PIPELINE, the CONTRACTOR shall

    make all arrangements necessary to preserve the continuoususe of the telephone or utility lines during the construction of

    the PIPELINE and shall pay all the costs of maintaining and

    relocating their services.

    5.4.5 The CONTRACTOR is responsible to evaluate which

    services (buried or above ground) encroach upon the

    PIPELINE route. The CONTRACTOR shall be responsible

    for notifying owners of these facilities in advance of any right-

    of-way clearing or construction WORK which could affect ordisrupt these services. The CONTRACTOR will be

    responsible for working with these service owners to

    establish agreed on construction methods which should

    protect such services through all WORK related activities

    until final reinstatement is complete. The CONTRACTOR

    shall notify the COMPANY of these agreed on construction

    methods. Regardless of the service owners cooperation

    and agreements, full responsibility shall remain with the

    CONTRACTOR for all WORK related damages to or

    disruptions of these services caused by, either directly or

    indirectly, the CONTRACTOR.

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    5.5 CROSSING OF RICE FIELDS

    5.5.1 Prior to the commencement of construction through rice fields the

    CONTRACTOR shall submit for COMPANY approval a comprehensive

    Method Statement detailing how the isolation of the right-of-way will becarried out to ensure minimum crop losses, the control of surface water,

    control of water in the excavated trench, and the proposed reinstatement

    of the right-of-way. Construction operations shall not commence until the

    method statement has been approved by the COMPANY.

    5.5.2 Part of the PIPELINE route crosses a number of large rice

    fields. Due to the importance placed on this crop, the

    CONTRACTOR shall exercise all reasonable diligence to

    ensure that only those areas required for construction are

    isolated for the execution of the WORK, and, once these

    areas are isolated, that construction proceeds without any

    undue delay to ensure crop losses and the period of land

    occupancy is kept to the absolute minimum.

    5.5.3 The majority of rice fields are artificially irrigated by the use

    of large diameter lift pumps from a network of irrigation

    channels and ditches. The CONTRACTOR shall not disturb

    any levee, berm, dike, dam or other such water control

    facility, nor cut, fill, divert any watercourse without prior

    approval of the COMPANY. Under no circumstances shall

    the flow in the main irrigation channels to adjacent crop fields

    be interrupted or blocked.

    5.5.4 The CONTRACTOR shall execute a full right-of-way topsoil

    strip and ensure that a physical segregation of topsoil and

    subsoil is provided, and maintained throughout the

    construction period. Topsoil shall be stored within the width

    of the right-of-way. Any and all loss for whatever reason,

    shall be the responsibility of the CONTRACTOR.

    5.5.5 The passage of construction traffic across irrigation channels

    and ditches shall be by means of bridging or fluming. In the

    case of the latter, it shall be the CONTRACTORs sole

    responsibility to ensure sufficient flume pipes are installed to

    maintain the regular flow of water. The fording of channels

    and ditches will not be permitted.

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    5.5.6 The programming of construction activities will be critical to

    successful completion through these crop fields and it is

    expected that the CONTRACTOR will, where possible,

    coordinate the timing of these activities to coincide with the

    period between harvesting and re-planting.

    5.5.7 Where the Landowner/occupier wishes to flood rice fields on

    the PIPELINE route during the CONTRACTORs occupation

    of the right-of-way for performance of the WORK, then the

    CONTRACTOR shall isolate the right-of-way by constructing

    levees or berms along each side of the right-of-way. The

    CONTRACTOR shall ensure the supply of sufficient capacity

    of pumping power to transfer water and maintain the flow ofirrigation water to adjacent fields. The CONTRACTOR shall

    be responsible for sourcing the material to be used to

    construct such levees and berms, and for the subsequent

    removal from site of this material on completion of the works.

    All such levees or berms shall be contained within the right-

    of way.

    5.5.8 Whenever it is deemed necessary to cut through existing

    levees, it is the responsibility of the CONTRACTOR toconstruct and maintain any temporary dikes or levees, and

    for any subsequent failure of these temporary facilities.

    5.6 GENERAL

    5.7.1 While doing right-of-way WORK the CONTRACTOR shall make ever effort

    to locate, mark, record and report to the COMPANY any foreign pipeline,

    utility, or any other items that would be considered during the design or

    construction of the PIPELINE and its facilities.

    5.7.2 The CONTRACTOR shall provide a photographic record showing all

    boundary crossings, river crossings, creek crossings, road crossings and

    rail crossings and/or any other sensitive areas before commencement of

    the WORK. A similar photographic record shall be taken after completion

    of reinstatement and submitted to the COMPANY.

    5.7.3 The CONTRACTOR shall be responsible for scheduling the work so that

    disruption of irrigation will not occur. Off right-of-way crop damage due to

    disruption of irrigation resulting from PIPELINE construction activities shall

    be the CONTRACTORs responsibility.

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    5.7.4 In areas of high ground water, CONTRACTOR shall

    construct earthen work pads or other suitable means to

    support construction equipment. All fill materials used shall

    be provided by the CONTRACTOR.

    6 Access and Traffic Planning

    6.1 Gasoducto Cruz del Sur has developed a preliminary Traffic Plan that shall

    be issued to the contractors. Once the CONTRACTOR has determined

    his logistic plan for material supply (i.e.: locations of local pipe storage, site

    offices, sources of bulk imported materials, etc.), CONTRACTOR will be

    required to submit a revised Traffic Plan to the local authorities

    incorporating movement of materials from supply locations to the site.

    6.2 The CONTRACTOR is expected to utilize existing roadways (paved roads,

    dirt roads, permitted use of private roads, etc.) for direct access to the

    Working Width and Working Areas at authorized entry/exit points to the

    right-of-way. Construction of temporary access roads other than those

    authorized roads specified above shall not be permitted except under

    unusual circumstances and then, only with the approval of Gasoducto

    Cruz del Sur and the relevant local municipalities.

    6.2.1 In the unusual case where the distance between any two existing accessroutes (paved roads, dirt roads, permitted use of private roads, etc.) to the

    right-of-way would be judged by the CONTRACTOR to be excessive, i.e.:

    requiring extremely long distances of travel along the right-of-way (from

    either direction of the two available accesses) to the WORK SITE areas,

    the CONTRACTOR would be required to identify these areas within the

    revised Traffic Plan.

    6.2.2 Within the CONTRACTOR revised Traffic Plan, the CONTRACTOR is

    required to provide full justification for these areas where a temporary

    access road, between the available access roads and the PIPELINE right-

    of-way, would be necessary.

    6.2.3 The CONTRACTOR shall also identify within the revised Traffic Plan the

    method of construction to be utilized for the temporary access road. The

    defined method of road construction shall be based on a CONTRACTOR

    Engineering study of the geography and topography of the land to be

    crossed by the temporary road, and the size, weight and type of

    CONTRACTOR equipment to use the temporary road.

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    6.2.4 When temporary roads are required and approved, they shall be

    constructed so that environmental impacts of the CONTRACTORs

    construction, usage and reinstatement of the temporary road will be

    minimal, i.e.: sprayed oil on dirt shall not be allowed, water run-off from the

    temporary road should not cause a contamination of adjoining land areas,

    roadway compaction such that ruts or furrows are not created due to the

    weight of the CONTRACTOR equipment using the road. Reinstatement

    shall return the land utilized for the temporary road to its original condition

    to the same degree as required for the reinstatement of the right-of-way

    and to the COMPANYs and landowners satisfaction.

    6.3 In conjunction with the Traffic Plan and local authorities, the

    CONTRACTOR is responsible for assessing the suitability of roads for thetypes and weight of heavy equipment that must be transported to the site.

    In some instances, rehabilitation or strengthening by the CONTRACTOR

    of critical roads, bridges, or overpasses may be required to safely

    transport the heaviest equipment.

    6.4 The Traffic Plan generally covers the following topics:

    A. Traffic Classification:

    All vehicles used for the project will be classified according to

    weight and cargo type, and the access of various classifications

    may be limited based on the carrying capacity of certain roads.

    B. Road Condition:

    Prior to the start of construction, local municipalities may conduct

    road assessment surveys. These surveys will be provided to the

    CONTRACTOR and form a baseline against which any damage to

    the roads from construction activities will be compared. TheCONTRACTOR is required to repair any damage to the satisfaction

    of the local municipalities. During construction, the CONTRACTOR

    will keep all roads free of dirt and debris using methods acceptable

    to the local municipalities.

    C. Traffic Flow:

    This section of the traffic plan details all approved roads and entry/

    exit points to the PIPELINE right-of-way.

    D. Road Signs and Crossing Control:

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    The CONTRACTOR will use a system of temporary road signs that

    is acceptable to the relevant statutory or municipal authorities.